No Winners Seen for Investors in Pakistan’s Neck-and-Neck Election
- Victor to inherit deteriorating economy requiring IMF support
- Khan seen as unknown quantity; Nawaz deemed business-friendly
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Whoever wins Pakistan’s election next week, gains in the rupee, stocks and bonds are likely to be short-lived as the new government grapples with a mounting set of economic challenges.
Investors including Standard Life Investment Ltd. and Frontier Investment Management Partners Ltd. say a victory for former cricket star Imran Khan’s Pakistan Tehreek-e-Insaf or Movement for Justice, would create uncertainty but could lead to progress on tackling corruption over the longer term. A win for the business-friendly Pakistan Muslim League-Nawaz would probably be better for the market, according to Terra Nova Capital Advisors Ltd.